PENGARUH BELANJA PUBLIK TERHADAP PERTUMBUHAN EKONOMI DI PROVINSI DAERAH ISTIMEWA YOGYAKARTA

Ari Mulianta Ginting
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Abstract

Fiscal decentralization has brought impacts to local government. The increasing fiscal decentralization influences the local government expenditure on public service, including health and education. This essay uses quantitative method to analyze the influence of the increasing public spending to local economic growth in municipalities and districts in the Yogyakarta Province. Panel regression analysis shows that the local government’s spending on education sector has a positive and significant influence on local economic growth in each municipalities and districts in the province. Meanwhile the local government’s spending on health, although it has a positive influence, it is not significance, either in municipalities or districts in the province. Therefore, this research recommends that the local government should increase its expenditure on education in order to improve economic growth in the region

Keywords

public spending; economic growth; education and health; fiscal decentralization budget; Yogyakarta Province

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References

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